Central and state governments collected Rs1.24 trillion in goods and services tax (GST) revenue in March, a record since the new indirect tax was rolled out in 2017.
The revenue growth is aided by the government’s drive against fake invoices and rule changes meant to ensure that transaction details are reported in time by businesses. The highest ever monthly GST revenue collection comes at the end of a financial year in which the economy has suffered a major stress on account of the pandemic.
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An official statement said that after the settlement of various components, the central government received Rs58,852 crore and states Rs60,559 crore. The central government has also released a compensation of Rs30,000 crore to states in March. March revenue receipts refer to the transactions that happened in the month before.
“The GST revenue during March 2021 is the highest since introduction of GST. In line with the trend of recovery in the GST revenues over past five months, the revenues for March 2021 are 27% higher than the GST revenues in the same month last year,” said the statement from the finance ministry.
On a quarterly basis, GST revenue saw contraction of 41% and 8% respectively in the June and September quarters of the just concluded financial year, followed by an 8% and 14% growth respectively in the December and March quarters. The finance ministry said this indicated the trend in recovery of GST revenues as well as of the economy as a whole.